Noble Corp. net income up 50%

SteveGelsi

NEW YORK (MarketWatch) - Noble Corp. drew praise from at least one Wall Street analyst Thursday after the oil drilling firm reported a 40% jump in net income on the back of improved day rates on its rigs.

Noble Corp.
NE, -3.27%
said earnings for the three months ended Sept. 30 topped $318 million, or $1.18 a share, from $207.2 million, or 76 cents a share in the year-ago period. Revenue increased to $792 million from $562 million.

Analysts forecast earnings of $1.17 a share and revenue of $762.3 million, on average, according to a survey by Thomson Financial.

Shares of Noble Corp. jumped $2.73, or 5.5%, to close at $52.57.

Brokerage firm Morgan Keegan said Noble beat its forecast partly on strength in its international business.

"Noble Corp. continues to be one of our favorite names as the company has everything we are seeking for investment in the current market: term contracts, international presence, and a diversified, quality rig fleet," Morgan Keegan said in a note to clients.

Third-quarter results included after-tax charges of 4 cents a share related to the closure of its technology business unit, costs associated with the ongoing independent investigation of its Nigerian operations and expenses related to the resignation of its chief executive officer.

The company said average day rates rose to $147 million from $102 million in the year-ago period, with average rig utilization of 94%.

Looking ahead, Noble Corp. expects its Noble Paul Romano rig in the deepwater Gulf of Mexico to return to full service by the end of the month after a mooring system upgrade.

Romano will re-commence its contract with Anadarko
APC, -4.94%
and BHP
BHP, +0.92%
at $435,000 per day, running through year-end 2008.

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